According to the Legislative Budget Board (LBB), HB 1360 is not expected to have a significant fiscal impact on the State of Texas. The proposed changes—mainly amendments to the Government Code and the Health and Safety Code—clarify and expand the list of allowable exceptions to state building code preemption, particularly related to energy efficiency and conservation standards. These adjustments will require the State Energy Conservation Office (SECO) to follow new procedural requirements when adopting or amending residential energy codes.

Although the bill imposes new duties on SECO, such as conducting public hearings and submitting written findings when revising state energy codes, the LBB anticipates that any associated administrative costs can be absorbed using the agency's existing resources. This means there will be no need for additional state appropriations or new funding mechanisms.

Furthermore, the legislation is also projected to have no significant fiscal impact on local governments. The bill does not mandate new expenditures or programs for municipalities or counties, and the exceptions it outlines largely codify practices that local entities may already follow. Consequently, the bill maintains financial neutrality while offering greater clarity and predictability for both regulators and the regulated community.

HB 1360 reflects a pragmatic and liberty-aligned approach to refining how Texas governmental entities regulate building standards. By amending the Government Code and Health and Safety Code, the bill restores and clarifies the authority of the State Energy Conservation Office (SECO) to adopt and update energy codes and conservation standards, while preserving state preemption over inconsistent or overly restrictive local ordinances. It also provides narrowly defined exceptions for local entities to adopt building standards in support of key public policy goals, such as environmental sustainability, historical preservation, and safety near military installations.

This legislation supports the five core liberty principles. It limits government overreach by constraining local regulation and ensuring that any new requirements are justified by data and public input. It enhances personal responsibility by requiring SECO to conduct cost-benefit and housing affordability analyses before adopting or amending energy codes. It fosters free enterprise and economic consistency by reducing regulatory fragmentation, which is particularly beneficial to developers and builders operating in multiple jurisdictions. Additionally, the bill upholds private property rights by ensuring property owners are not subjected to arbitrary or burdensome standards without due justification.

Importantly, HB 1360 carries no significant fiscal impact at either the state or local level. According to the Legislative Budget Board, the new responsibilities placed on SECO can be absorbed with existing resources, and no additional costs are expected for local governments. The policy design ensures that updated building standards will not be adopted unless they are demonstrably cost-effective and transparent in their development.

In conclusion, HB 1360 balances regulatory flexibility with necessary safeguards, enabling Texas to modernize its energy efficiency standards while preserving individual liberty and economic opportunity. It exemplifies responsible governance, and as such, Texas Policy Research recommends that lawmakers vote YES on HB 1360.

• Individual Liberty: The bill upholds individual liberty by preventing local governments from imposing arbitrary or overly restrictive building standards that may hinder property owners' ability to design and construct buildings to their needs and financial capacity. The bill permits only specific, narrowly defined exceptions—such as those necessary for energy efficiency, water conservation, or historic preservation—thereby limiting undue government interference in private decisions.
• Personal Responsibility: The bill reinforces personal responsibility by requiring the State Energy Conservation Office (SECO) to conduct cost-effectiveness and housing affordability analyses before adopting or amending energy codes. This ensures that individuals—whether homeowners, builders, or developers—are not subjected to new mandates without a clear understanding of the economic impacts. It encourages policy rooted in data, accountability, and sound judgment.
• Free Enterprise: The bill fosters free enterprise by promoting regulatory uniformity across Texas, reducing the risk of conflicting or unpredictable local regulations that could stifle business operations. Builders, developers, and other stakeholders benefit from greater clarity and stability in the rules governing construction materials and methods, allowing them to innovate and operate more efficiently.
• Private Property Rights: The bill protects private property rights by limiting the ability of local jurisdictions to impose standards beyond those authorized by state or federal programs. This approach ensures that property owners retain greater control over how they use and develop their land and buildings, free from excessive local mandates unless those mandates serve a clearly defined public interest.
• Limited Government: The bill embodies the principle of limited government. It restrains local governments from enacting building codes that exceed the authority granted by the state while still allowing exceptions for public safety, energy efficiency, and environmental conservation. At the same time, it mandates transparency and stakeholder involvement in SECO’s rulemaking, ensuring that regulatory actions are carefully scrutinized, justified, and not exercised arbitrarily.

• HB 5109 (Same As)
• SB 783 (Same As)